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More Than $10 Million Awarded To Whistleblower By Securities And Exchange Commission

On October 31st, 2022, the Securities and Exchange Commission (SEC) announced a whistleblower award in excess of $10 million. The whistleblower compensation was granted after the agency determined the whistleblower made a significant contribution to successful enforcement action in a securities fraud case. Documents and guidance provided by the whistleblower were essential to the SEC making its case. Here, our Florida securities industry whistleblower lawyer discusses the latest eight figure whistleblower award issued by the SEC.

Whistleblower Provided Key Documents, Made With SEC Staff Multiple Times

In Whistleblower Award Proceeding (File No. 2023-07), the SEC emphasized that the individual in this case made essential contributions that helped the agency take successful enforcement action. More specifically, the SEC states that the whistleblower provided key documents and met with agency staff multiple times to help them get a better handle on the securities fraud matter.

Based on the information provided by the whistleblower, the SEC was able to take enforcement action and recover significant funds on behalf of wronged investors. The SEC also noted that there was a particularly close nexus between the information provided by the whistleblower and the agency’s ability to take successful enforcement action. More than $10 million was awarded.

SEC Whistleblowers Can Remain Confidential

 The SEC Whistleblower Program was created and funded by an act of Congress. The program has existed since 2012 and more than $1.2 billion in whistleblower compensation has been awarded. It is designed to provide an additional incentive for securities industry insiders and other people with useful information to come forward and work with authorities to protect investors.

Notably, an SEC whistleblower can remain anonymous. A person can disclose sensitive information to the agency through an attorney. The SEC will not initially need to know the whistleblower’s identity. Only if whistleblower compensation is approved will the person need to share their name with the SEC.

The SEC will never make the names of whistleblowers public. Indeed, in its public announcement confirming the awarding of whistleblower compensation, the federal agency only provides very limited details about the case. It never specifies which enforcement action is related to the whistleblower award. It will not name the whistleblower or state exactly what they provided.

This anonymity is important. The SEC knows that people working in sensitive positions—such as in finance—fear retaliation. They might lose their job or fear being blackballed from the industry. The SEC worries that this fear of retaliation is preventing potential whistleblowers from sharing information about securities fraud.

Get Help From an SEC Whistleblower Lawyer in Florida

At ​Carlson & Associates, P.A., our Florida SEC whistleblower attorney is standing by, ready to help you navigate the legal process. If you have questions about making a confidential disclosure with the SEC, we are here as a legal resource. Call us now or connect with us directly online to arrange your completely confidential initial consultation. From our law office in Miami, we represent securities industry whistleblowers in Florida and beyond.

Source:

sec.gov/news/press-release/2022-196

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